Julong Holding Limited (JLHL) Registration Filing summary

Company overview and business model

• Growth-oriented provider of intelligent integrated solutions for public utilities, commercial, and multifamily properties in China, offering security, fire protection, parking, and management systems.

• Business lines include engineering solutions, operation and maintenance, and sales of equipment and materials for intelligent systems.

• Projects are secured via direct invitations or competitive tenders, with a focus on large-scale, complex projects.

• Notable clients include international airports, public universities, and commercial banks in China.

• Corporate structure is a Cayman Islands holding company with operations conducted through PRC subsidiaries.

Financial performance and metrics

• Revenue increased 45.8% to RMB173.7 million (US$24.7 million) in FY2024; net income rose 52.1% to RMB17.1 million (US$2.4 million).

• Gross profit grew 40.8% to RMB26.6 million (US$3.8 million) in FY2024; gross margin slightly decreased to 15.3%.

• Cash and cash equivalents at FY2024 year-end were RMB20.8 million (US$3.0 million).

• Backlog as of September 30, 2024: 75 engineering projects (RMB40.8 million) and 37 maintenance projects (RMB15.8 million).

• Top five customers accounted for 82.3% of FY2024 revenue.

Use of proceeds and capital allocation

• Estimated net proceeds of US$4.6 million (assuming US$5/share IPO price).

• 55% for strategic acquisitions and investments, 20% for market expansion, 15% for R&D, and 10% for general corporate purposes.

• Proceeds may be subject to PRC regulatory approval for transfer to PRC subsidiaries.